Automate your global transfer pricing documentation

Our digital solution: KPMG TPAD

Digital need
Solution
Key benefits

High documentation standards

Globally, transfer pricing documentation compliance requirements have increased for multinational enterprises with respect to format and timing of preparation.

With most tax jurisdictions adopting the BEPS Action 13 master file/local file approach, multinational enterprises are often required to contemporaneously prepare and maintain transfer pricing documentation in the form of a local file for each of the legal entities that forms part of a multinational enterprise. This often results in a long and costly process.

With KPMG TPAD, we use technology to rethink your existing transfer pricing documentation process, allowing your company to free up resources, while remaining compliant and efficient.

A flexible solution with a strong track record

Since TPAD was developed five years ago, our team has assisted numerous multinationals across industries and today generates hundreds of transfer pricing documentations every year.

The simplicity of TPAD is a great advantage, as the programme only requires Excel files and one Word template as input, resulting in several Word files as output.

With its intuitive interface and its ability to handle Word and Excel formats, TPAD is simple to apply by non-IT professionals and can either be used by your tax department or by our team.

Advantages of using TPAD

Use of a standard template
Clear audit trail
Flexible tool
Cost optimizing
Easy to use
Customization

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TPAD client case

Helping a Danish multinational manufacturer of building materials acheive global documentation compliance with the use of technology.

The situation

In response to the increasing transfer pricing documentation compliance requirements in the jurisdiction of operations, a Danish multinational manufacturer of building materials was looking to centralise and streamline their process for preparing compliant transfer pricing documentation for more than 30 entities. Historically, a fragmented approach was taken, where the use of local advisers attracted high fees without ensuring consistency in the transfer pricing documentation package.
The solution

Applying the existing local file template of the Group, an information request list ("IRL") was prepared to both systemise existing centrally available data and gather/validate the outstanding data locally, as required for the preparation of the local files. The process allowed for the Group to maintain the information gathering themselves, but in a much more effective manner than previously.
The existing local file template was furthermore adapted to be utilised with TPAD, taking into consideration varying requirements as it would need to cover both entities engaged in manufacturing and distribution.
The success

By utilising TPAD and the processes associated herewith, the Group was able to achieve significant cost and time savings already in the first year and had all of the local files in scope for the engagement ready less than 3 months after the financial year end. Further, by engaging in a 3-year engagement, the Group was able to gain additional savings in year 2 and 3 by optimising the process even further.
In summary, the Group was able to achieve documentation compliance earlier and for more entities than before at significantly lower costs.